Procurement Procedures And Procurement Performance Of Security Firms In Nairobi, Kenya

Abstract

The research was aimed at probing the correlation between procurement procedures and performance of security firms in Nairobi, Kenya. To find out whether there are procurement procedures used by security firms in Nairobi, Kenya, to determine the extent of adherence of procurement procedures in security firms in Nairobi, Kenya, to inaugurate the relationship between procurement procedures and procurement performance in security firms in Nairobi, Kenya. This study is anchored on Institutional and Agency Theory. This study was carried out by means of a descriptive survey methodology. The target sample in this research constituted registered security firms in Nairobi, Kenya which are 88 in number (KSIA, 2016), appendix II. Considering that the population is not too large, a census is proposed. During the study, the researcher utilized a questionnaire that included closed and open-ended questions. For section A, B, and C, descriptive statistics method was adopted. Section D employed correlation and regression analysis. Correlation analysis was utilized in the determination of independent variables and dependent variable relationships, while to find out the degree of the relationship among the variables, regression analysis was brought into play. This research found the existence of a solid important positive correlation between procedures employed in procurement and the procurement performance of security firms. A unit increase in procurement procedures (Need Recognition, Specification Writing, Supplier Sourcing, Price and Terms Analysis, Release of Purchase Order, expedite for Delivery, Invoicing for Approval and Record Keeping) leads to an increase in the procurement performance of security firms. Further the study concludes that needs in security firms arises from users, and suppliers are properly sourced, Procurement in security firms observes record keeping, Proper expedition alleviates delays, all purchases are accompanied by a PO and price and terms analysis is properly done. Procurement procedures link with procurement performance in the security firms to a great extent. Need recognition, controls level of purchases and specification writing avoids unnecessary purchases. The study established that most of security firms had procurement department, but few firms were found not to have procurement department. Therefore this study recommends that management should ensure that each security firm has a functioning procurement department. To improve the performance of security firms this study recommends; a well systematic process to identify procurement requirements and written procurement procedures should be established in every firms. The management should focus on timely release of purchase orders and procurement records in order to increases procurement performance. This study focused only on relationship between procurement procedures and performance of security firms in Nairobi, Kenya. Therefore, another research should be carried out to establish challenges facing security firms in Kenya generally. Another research like this should also be conducted other companies across the country, including more independent variables. A major limitation was secrecy on information. There was unwillingness of informants from some security firms to give information and fill questionnaires. Some respondents feared that the information obtained would be used against them